Tackling Environmental and Social Exploitation in Supply Chains
When the Modern Slavery Act of 2015 went into effect in the United Kingdom, businesses were challenged to better understand their own supply chains. The Act applies to any commercial organization that does business in the United Kingdom (U.K.), and not just for its U.K.-based operations. The Act requires businesses with an annual turnover of more than £36 (USD $46.5) million to declare to the public their efforts to increase supply chain transparency and reduce the risk of environmental and social exploitation in their operations. Since the Act’s passage, there has been a marked increase in the urgency of efforts to improve Environmental and Social Governance (ESG) in businesses across all sectors. Despite this, research by the Chartered Institute of Procurement and Supply (CIPS) shows that over one-third of businesses covered by the Act are still not meeting the requirements.